Is passive income real? You have probably heard about passive income, and it sounds great but is it a real thing?
Let me assure you that it is not only real but easily obtained. Like anything else in life, it takes acquiring knowledge and putting in some work to get it. You will believe when dollars start going into your bank account.
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What Is Passive Income
Passive income is income that requires minimal labor to earn and maintain. It is called progressive passive income when the earner expends little effort to grow the income. Examples of passive income include rental income and any business activities in which the earner does not materially participate. Some jurisdictions' taxing authorities, such as the Internal Revenue Service in the United States of America, distinguish passive income from other forms of income, such as earnings from regular or contractual employment, and may tax it differently.1
Real Or Not?
I think we all agree that the stock market is real and stocks that have been paying dividends for the last 100 years. Companies like Coca-Cola, PPG Industries, General Mills, and Colgate-Palmolive, to name a few. Those dividends are passive to the stockholder and are very real.
The question is it real or not most likely arises from the various ways of creating income. Many of these ways we address on our website in other articles. These would include things like affiliate marketing, dropshipping, blogging, to name a few. While all of these are easy to start, making a profit can be more difficult. These tend to follow the same patterns of success as any business, even brick, and mortar. Some will fail, some will make some money, and a few will make a lot. Success or fail- they are all real.
So I think we have established passive income is real. The next question is, how do you participate. These are the tips I think anyone interested in their own passive stream should follow.
- Educate your self about the various ways to make passive income.
- Choose the method you will use that makes sense for you.
- Set realistic expections. It's not going to make you rich overnight.
- Set short term goals. Read how to make $10,000 a month in passive income.
Realize you will have to work hard to create your income. There is no magic, just hard work, and dedication mixed in with determination. There is no greater feeling than to make money while you sleep. But, when it does start to happen, you will see that not only is it real, it is a blessing in your life. It can protect you when you have an emergency and can't work or an unexpected expense that you couldn't afford to pay otherwise. Even better if it can be put to use to earn even more income.
Passive income is indeed real and can come from various methods. To succeed at generating income passively can be a challenge, but you can do it. So get started today earning yours.